English mayors flex new tourist tax power

Mayors across England will gain the power to impose a percentage-based tourist tax on overnight stays, part of a broader plan by Prime Minister Andy Burnham to shift tax authority from Westminster to regional leaders. The levy is optional, requires consultation with residents and businesses, and cannot be varied by season, with hotels and platforms like Airbnb collecting the funds.

Supporters, including Housing Secretary Angela Rayner and London Mayor Sadiq Khan, say the money will fund infrastructure and attractions that both residents and tourists rely on. Just 6% of UK taxes are collected locally, among the lowest shares in the G7, which ministers cite as justification.

Critics, led by the Conservative Party and hospitality trade groups, warn the uncapped levy could cost 33,000 jobs and add up to 120 pounds to a family holiday, noting similar charges in Paris, Rome and Berlin come with caps England's version lacks. Scotland already runs a version in Edinburgh, and Wales plans one for 2027.

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